Centre goes full steam on disinvestment

New Delhi: To take advantage of the current bullish sentiments in markets, government is planning to go for full fledged disinvestment after the budget.

Finance minister has asked the disinvestment department to complete the groundwork for the disinvestment of PSUs. With taxes not expected to see much buoyancy this year, government is looking at the disinvestment proceeds to stick to its fiscal deficit targets.

In the forthcoming budget scheduled for next month, government is expected to retain the disinvestment target for the current fiscal at Rs 36,925 crore which was set by P. Chidambaram in the interim budget for 2014-15.

Disinvestment department had earlier given a presentation to the finance minister Arun Jaitley. Mr Jaitley is reported to have told the department to be ready with the stake-sale proposals.

Disinvestment department has  already invited proposals from merchant bankers for the valuation of Hindustan Zinc. The proposals are to be submitted by June 27. 

Coal India, with a market capitalisation of Rs 2,45,769.74 crore, and the Steel Authority of India (SAIL),  valued at Rs 40,082.34 crore, are expected to be the disinvestment target for the current financial year. Government is expected to divest 5 per cent stake in both these PSUs.

Meanwhile, foreign investors have pumped more than Rs 26,000 crore into the Indian market this month so far primarily on account of positive bias after polls and reform-oriented decisions taken by the new government.

According to the data compiled by securities depositories, net investment by foreign investors into equity markets stood at Rs 10,359 crore, while in debt market it was Rs 15,806 crore, a total of Rs 26,165 crore ($4.42 billion), this month so far.

Cashing on Bull trend

In the forthcoming budget scheduled for next month, government is expected to retain the disinvestment target for the current fiscal at Rs 36,925 crore which was set by P. Chidambaram in the interim budget for 2014-15.